Hong Kong has signed a double tax agreement with Jersey, the UK Crown Dependency and offshore financial centre.

The agreement, signed by Hong Kong’s secretary for financial services K C Chan and Jersey’s chief minister senator Ian Gorst, will facilitate the exchange of tax information between the two parties.

Jersey Finance, the promotional agency for the island’s financial industry, said in a statement that it believes it will also have commercial benefits for Jersey and strengthen its position in the Far East. The agency has had a permanent office in Hong Kong since 2009.

“That China’s GDP is expected to continue to grow at around 8 per cent reaffirms that there are clear opportunities for Jersey to grow its private wealth management business through its specialist trust and foundation structures and popular expat banking services,” said Geoff Cook, chief executive of Jersey Finance.

The organisation also said that investment from Hong Kong and China in Jersey is substantial, with nearly £7 billion ($11 billion) of banking deposits emanating from the Far East. What is more, a quarter of the Chinese companies that have listed in London have done so through Jersey, according to Jersey Finance.

The agreement is the latest example of increasing co-operation between the Channel Islands and other jurisdictions. According to a review by the Organisation for Economic Co-operation and Development in October last year, Jersey has made strong progress in becoming more transparent on tax data.